J.M. Smucker SJM
The J.M. Smucker Company is a packaged foods company that manufactures and markets brands such as Smucker's, Folgers, Jif, and Milk-Bone, selling through supermarkets and retail stores. Smucker shows a tight financial health (ND/EBITDA of 3.05, payout of 205.61%) which the market discounts with a forward P/E of 11.08, but its strong cash generation (FCF yield of 11.33%) and solid operating margin of 17.90% provide some cushion.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
The J.M. Smucker Company is a packaged foods company that manufactures and markets brands such as Smucker's, Folgers, Jif, and Milk-Bone, selling through supermarkets and retail stores. Smucker shows a tight financial health (ND/EBITDA of 3.05, payout of 205.61%) which the market discounts with a forward P/E of 11.08, but its strong cash generation (FCF yield of 11.33%) and solid operating margin of 17.90% provide some cushion.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 5.5 |
| Valuation | 5.6 |
| Growth | 5.6 |
| Dividend | 3.4 |
| Momentum | 7.9 |
| Risk & Context | 8.6 |
OVERALL SCORE: 5.8/10
Context and risks
The rise in US rates (10-year at 5.17%) is a relevant factor for SJM due to its high leverage (ND/EBITDA of 3.05) and high payout (205.61%), which makes debt service more expensive and pressures cash generation to maintain the dividend.
News considered in the analysis
- Why Is Smucker (SJM) Down 7.7% Since Last Earnings Report? — La caída post-resultados refleja la preocupación del mercado por el alto payout y el apalancamiento, aunque la noticia es de hace semanas y parte del movimiento ya está en el precio.
- J. M. Smucker (SJM) Stock Looks Stretched After Its 27% Run — Artículo de opinión que señala una posible sobrevaloración tras la fuerte subida; es una advertencia cualitativa, no un hecho material.
- 1 Consumer Stock to Target This Week and 2 We Question — Listículo sin información nueva sobre la empresa.
- 3 US Consumer Staples Stocks To Watch As Inflation Squeezes Shoppers — Comparativa genérica del sector sin datos específicos de SJM.
- Is J. M. Smucker Stock Outperforming the S&P 500? — Análisis de rendimiento relativo sin información nueva sobre fundamentales.
Verdict: Hold; the forward P/E valuation is attractive, but high leverage and an unsustainable payout limit upside potential.
Main risk: The main risk is high leverage (ND/EBITDA of 3.05) combined with a payout of 205.61%, which could force a dividend cut or a capital raise if the high-rate environment persists.
Other Consumer Defensive companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →